Method and system for currency exchange by point of conversion

ABSTRACT

In one embodiment, one use of the disclosed method/system is for any multinational entity or individual performing currency exchanges is for business or personal use. This embodiment will greatly enhance the Transparency of the Cash Conversion Process at the ACTUAL POINT OF CONVERSION (POC), revealing dealt and offset pricings and TIME thereof thus providing the customer with a complete report of conversion as with any commodity conversion. With the POC method, the client will have a substantially complete accounting of the value of the funds conversion from one region&#39;s currency to another.

This application contains material that is subject to copyrightprotection. Such material may be reproduced by any person exactly as itappears in the Patent and Trademark Office patent files or records. Thecopyright owner otherwise reserves all rights to such material.

A further embodiment functions within the system of the interbankmarket. This market does not have a central exchange and the currenciesof most developed countries have floating exchange rates causingcurrency values to fluctuate relative to other currencies; primarilybanks and other market makers dictate the values.

One embodiment provides entities/individuals with the ability to seeinto the non-transparent interbank market allowing for opportunity toincrease exchange efficiency, decrease cost of exchange and provideaccurate disclosure of cost by identifying the difference between thecustomer dealt rate of the exchange and the rate in which theaccommodating Primary Market actually offsets for that delivery. Inother words, this embodiment shows the added Value to the Primary MarketMaker, and thus revealing the market cost and/or Fee to the one takingdelivery.

A further embodiment was developed for the use of multinationalcompanies exchanging foreign currency; the system can also be for theuse of private individuals. A still further embodiment providestransparency of values and cost to a customer performing currencyexchange through the issuing of a point of conversion (“POC”) reportwith each transaction. This POC report contains the pertinentinformation to allow a customer the ability to substantiate the cost oftheir exchange. The POC report shows the offset rate and customer dealtrate and may also show at least one of the following:

-   -   Time Stamp: the date and time the trade was executed    -   Deal Date: the date the exchange was done or trade was executed    -   Reference number of Each Individual Trade, as Each Trade is        offset individually    -   Sell Amount: the amount of currency that is being sold by the        customer    -   Sell: the currency that is being sold by the customer    -   Buy: the currency that is being bought by the customer    -   Buy Amount: the amount of currency being bought by the customer    -   Offset Booking Rate: The Rate which the Primary Market Maker can        book to offset trade    -   Market Cost (USD): the cost of the conversion to the customer in        USD or base currency of customer as required, as the difference        from the Primary Market Offset to the total Buy or Sell Rate of        the customer.

In one embodiment the customer will not only be issued a POC report forthe values and cost of exchange but have the ability to account fullythe actual differences of their Commodities of Foreign Currency back totheir base domicile currency and accounting for all pertinent values anddifferences within the market place.

The Point of Conversion Report tracks the pertinent factors to define agap in the foreign exchange market for a businesses agenda and not thedealing bank.

BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWINGS

The present invention will be further explained with reference to theattached drawings, wherein like structures are referred to by likenumerals throughout the several views. The drawings shown are notnecessarily to scale, with emphasis instead generally being placed uponillustrating the principles of the present invention.

FIG. 1 illustrates one embodiment of an environment in which the presentinvention may operate.

FIG. 2 shows another exemplary embodiment of the computer and networkarchitecture that supports the inventive point of conversion system.

FIG. 3 depicts a flow chart of an embodiment of the point of conversionsystem that shows an example of compiling a point of conversionanalysis.

FIG. 4 depicts a flow chart of an embodiment of the point of conversionsystem, which shows an example of compiling a point of conversionanalysis, wherein the customer seeks to sell currency.

FIG. 5 depicts a flow chart of an embodiment of the point of conversionsystem, which shows an example of compiling a point of conversionanalysis, wherein the customer seeks to buy currency.

FIG. 6 depicts one example of a home screen presented to a user of anembodiment of the point of conversion system.

FIG. 7 a-h depicts a series of example screenshots presented to a userof embodiments of the point of conversion system.

FIG. 8 depicts an example of a POC report.

While the above-identified drawings set forth presently disclosedembodiments, other embodiments are also contemplated, as noted in thediscussion. This disclosure presents illustrative embodiments by way ofrepresentation and not limitation. Numerous other modifications andembodiments can be devised by those skilled in the art which fall withinthe scope and spirit of the principles of the presently disclosedinvention

Illustrative Operating Environment

FIG. 1 illustrates one embodiment of an environment in which the presentinvention may operate. However, not all of these components may berequired to practice the invention, and variations in the arrangementand type of the components may be made without departing from the spiritor scope of the invention. In some embodiments, the point of conversionsystem hosts a large number of members and concurrent transactions. Inother embodiments, the point of conversion system computer is based on ascalable computer and network architecture that incorporates variesstrategies for assessing the data, caching, searching, and databaseconnection pooling. An example of the scalable architecture is anarchitecture that is capable of operating multiple servers.

In embodiments, members of the inventive computer system 102-104 (e.g.user (e.g. players, agents, etc.)) include virtually any computingdevice capable of receiving and sending a message over a network, suchas network 105, to and from another computing device, such as servers106 and 107, each other, and the like. In embodiments, the set of suchdevices includes devices that typically connect using a wiredcommunications medium such as personal computers, multiprocessorsystems, microprocessor-based or programmable consumer electronics,network PCs, and the like. In embodiments, the set of such devices alsoincludes devices that typically connect using a wireless communicationsmedium such as cell phones, smart phones, pagers, walkie talkies, radiofrequency (RF) devices, infrared (IR) devices, CBs, integrated devicescombining one or more of the preceding devices, or virtually any mobiledevice, and the like. Similarly, in embodiments, customer devices102-104 are any device that is capable of connecting using a wired orwireless communication medium such as a PDA, POCKET PC, wearablecomputer, and any other device that is equipped to communicate over awired and/or wireless communication medium.

In embodiments, each member device within member devices 102-104 mayinclude a browser application that is configured to receive and to sendweb pages, and the like. In embodiments, the browser application may beconfigured to receive and display graphics, text, multimedia, and thelike, employing virtually any web based language, including, but notlimited to Standard Generalized Markup Language (SMGL), such asHyperText Markup Language (HTML), a wireless application protocol (WAP),a Handheld Device Markup Language (HDML), such as Wireless MarkupLanguage (WML), WMLScript, JavaScript, and the like. In embodiments, theinvention is programmed in either Java or .Net.

In embodiments, member devices 102-104 may be further configured toreceive a message from the another computing device employing anothermechanism, including, but not limited to email, Short Message Service(SMS), Multimedia Message Service (MMS), instant messaging (IM),internet relay chat (IRC), mIRC, Jabber, and the like.

In embodiments, network 105 may be configured to couple one computingdevice to another computing device to enable them to communicate. Inembodiments, network 105 may be enabled to employ any form of computerreadable media for communicating information from one electronic deviceto another. Also, in embodiments, network 105 may include a wirelessinterface, and/or a wired interface, such as the Internet, in additionto local area networks (LANs), wide area networks (WANs), directconnections, such as through a universal serial bus (USB) port, otherforms of computer-readable media, or any combination thereof. Inembodiments, on an interconnected set of LANs, including those based ondiffering architectures and protocols, a router may act as a linkbetween LANs, enabling messages to be sent from one to another.

Also, in some embodiments, communication links within LANs typicallyinclude twisted wire pair or coaxial cable, while communication linksbetween networks may utilize analog telephone lines, full or fractionaldedicated digital lines including T1, T2, T3, and T4, IntegratedServices Digital Networks (ISDNs), Digital Subscriber Lines (DSLs),wireless links including satellite links, or other communications linksknown to those skilled in the art. Furthermore, in some embodiments,remote computers and other related electronic devices could be remotelyconnected to either LANs or WANs via a modem and temporary telephonelink. In essence, in some embodiments, network 105 includes anycommunication method by which information may travel between customerdevices 102-104, and servers 106 and 107.

FIG. 2 shows another exemplary embodiment of the computer and networkarchitecture that supports the inventive point of conversion system. Themember devices 202 a, 202 b thru 202 n shown (e.g. traders' desktops)each comprises a computer-readable medium, such as a random accessmemory (RAM) 208 coupled to a processor 210 or FLASH memory. Theprocessor 210 may execute computer-executable program instructionsstored in memory 208. Such processors comprise a microprocessor, anASIC, and state machines. Such processors comprise, or may be incommunication with, media, for example computer-readable media, whichstores instructions that, when executed by the processor, cause theprocessor to perform the steps described herein. Embodiments ofcomputer-readable media may include, but are not limited to, anelectronic, optical, magnetic, or other storage or transmission devicecapable of providing a processor, such as the processor 210 of customer202 a, with computer-readable instructions. Other examples of suitablemedia may include, but are not limited to, a floppy disk, CD-ROM, DVD,magnetic disk, memory chip, ROM, RAM, an ASIC, a configured processor,all optical media, all magnetic tape or other magnetic media, or anyother medium from which a computer processor can read instructions.Also, various other forms of computer-readable media may transmit orcarry instructions to a computer, including a router, private or publicnetwork, or other transmission device or channel, both wired andwireless. The instructions may comprise code from anycomputer-programming language, including, for example, C, C++, C#,Visual Basic, Java, Python, Perl, and JavaScript.

Member devices 202 a-n may also comprise a number of external orinternal devices such as a mouse, a CD-ROM, DVD, a keyboard, a display,or other input or output devices. Examples of customer devices 202 a-nmay be personal computers, digital assistants, personal digitalassistants, cellular phones, mobile phones, smart phones, pagers,digital tablets, laptop computers, Internet appliances, and otherprocessor-based devices. In general, a customer device 202 a are be anytype of processor-based platform that is connected to a network 206 andthat interacts with one or more application programs. Customer devices202 a-n may operate on any operating system capable of supporting abrowser or browser-enabled application, such as Microsoft Windows®, orLinux. The customer devices 202 a-n shown may include, for example,personal computers executing a browser application program such asWindows® Internet Explorer, Apple Computer, Inc.'s Safari®, MozillaFirefox, and Opera.

Through the customer devices 202 a-n, users (e.g. players, agents, etc.)212 a-n communicate over the network 206 with each other and with othersystems and devices coupled to the network 206. As shown in FIG. 2,server devices 204 and 213 may be also coupled to the network 206.

FIG. 3 depicts a flow chart of an embodiment of the point of conversionsystem that shows an example of compiling a point of conversionanalysis. The following terms will be used in the embodiment shownbelow.

For purposes of this invention, negotiated spread means the rate thatthe market maker and customer have agreed to use to calculate thecurrency conversion and delivery of currency to the customer andincludes the agreed deal rate. In one example, the negotiated spread isnegotiated on a transaction-by-transaction basis. In another example,the negotiated spread is negotiated for transactions occurring during acertain time period. In a further example, the negotiated spread isnegotiated for a group of transactions. In another example, thenegotiated spread is based on parameters including LIBOR plus.

For purposes of this invention, the market maker means the bank or otherfinancial institution that sets currency exchange rates.

For purposes of this invention, the offset rate is the rate at which themarket maker will book the rate for the currency conversion and includesthe interbank market indicator. In one example, the offset rate is basedon at least the type of currency to buy or sell, the amount of currencyto buy or sell, and the type of currency for conversion.

For the purposes of this invention, real-time means at or about the verytime it occurs.

In this embodiment, the computer system receives a plurality of inputs.Suitable inputs include but are not limited to account number, customername, type of currency to buy or sell, amount of currency to buy orsell, type of currency for conversion, and the negotiated spread. At thetime that a currency conversion transaction is initiated, the computersystem receives, for example, the offset rate in real-time. The computersystem then calculates, for example, the customer dealt rate by addingthe negotiated spread to the offset rate. In one example, the computersystem calculates the customer dealt rate in real-time. In thisembodiment, the computer system calculates the amount of currency forexchange based on the offset rate and the customer dealt rate. At thisstage when an amount of currency for exchange is calculated, thecomputer system assigns a reference value to the transaction andcaptures the date and time. In one example, the reference value is areference number. In calculating the amount of currency for exchange,the computer system determines, for example, the market cost bysubtracting the offset rate from the customer dealt rate and calculatingthe value of the difference in a currency relevant to the customer (i.e.U.S. Dollars for a customer located in the United States of America).Finally, in one example, the computer system generates a point ofconversion (“POC”) report, at the same time that the amount of currencyfor exchange is calculated, which includes the offset rate and customerdealt rate. In another example, the POC report is generated at or aboutthe same time that the customer agrees with the pricing of thetransaction, including the negotiated rate. Additional suitable outputsof the computer system that may appear on the point of conversion reportinclude but are not limited to customer name and number, date andprecise time of execution (for example, to the second or smaller timeincrement), reference number, bought amount, currency bought, soldamount, currency sold, and market delivery cost.

In one example, immediately after the POC report is generated, it istransmitted to the customer. In another example, the POC report isstored, and after a series of transactions the stored POC reports arecompiled and then transmitted to the customer in a summary form. In afurther example, the POC report is stored and after a period of time thestored POC reports are transmitted to the customer.

In one embodiment, the point of conversion system includes services andoptions on such as:

-   -   Document Center: Allows a client to review and search documents    -   My Profile and Tools: Allows a client to set Preference, change        Username/Password, view Settlement Accounts and see any messages        with the Message Center.

FIG. 4 depicts a flow chart of an embodiment of the point of conversionsystem, which shows an example of compiling a point of conversionanalysis, wherein the customer seeks to sell currency.

FIG. 5 depicts a flow chart of an embodiment of the point of conversionsystem, which shows an example of compiling a point of conversionanalysis, wherein the customer seeks to buy currency.

FIG. 6 depicts one example of a home screen presented to a user of anembodiment of the point of conversion system.

FIG. 7 a-h depicts a series of example screenshots presented to a userof embodiments of the point of conversion system.

FIG. 7 a is screenshot of an example of the first page of one embodimentof an online point of conversion system, which is known as the“Dashboard.” This is the main area of navigation for a client. From hereclients can access any necessary items along with titles and links toeach of the main pages.

FIG. 7 b is a screenshot of an example of a section of an embodiment ofthe point of conversion system site that gives clients the ability tomake a payment to a third party and transact the exchangesimultaneously. This “ezPay” section consists of three steps that allowclients to easily move from New Orders to Payment Summary and how theywould like to settle out their accounts. Some highlights of “ezPay”include:

-   -   Identify payments first to streamline payment process    -   Lock in a rate for all payments against a single currency    -   Set up beneficiary and settlement accounts to instantly apply        payment    -   Use the Beneficiary Lookup tool to search and select beneficiary        details    -   Depending on a client's requirements, use the dual approval        process to approve deals    -   View, print or export transaction details for review

FIG. 7 c is a screenshot of an example of an “ezPay Payment Details”screenshot from one embodiment of the point of conversion system.

FIG. 7 d is a screenshot of an example of a section of an embodiment ofthe point of conversion system site designed to assist clients tocomplete spot transactions for cross currency trades. This “ezTrade”section allows a client to book the rate first and apply paymentinstructions later. This section consists of three steps where a clientcan get a quote and book a deal, send payments to a beneficiary andsettle the funds. Some highlights of “ezTrade” include:

-   -   Lock in rate first and then add payment instructions at the        client's convenience    -   Access previous order and quote history for new deals    -   Set up beneficiary and settlement accounts to instantly apply        payment    -   Use the Beneficiary Lookup tool to search and select beneficiary        details    -   View, print or export transaction details for review

FIGS. 7 e-f relate to an example of a section of an embodiment of thepoint of conversion system site designed to help clients managed theirclient base. These “Beneficiaries” tools allow a client to do thefollowing:

-   -   Add new beneficiaries with ‘Beneficiary Maintenance’, as clients        continue to create a list of beneficiaries they will have the        ability to search, review and edit these details.    -   ‘Payment Groups’ help the client to identify and organize a        series of similar payments to be released at the time of        payment, keeping the client organized and saving them time from        reviewing a long list of payees.        Some highlights of the “Payment Groups” feature include:    -   Group like payments to be released at the same time    -   Review and sort through list of payees with similar payments    -   Keep groups up-to-date at the client's convenience by easily        adding or editing groups or payments.        Some highlights of the Beneficiaries Section include        “Beneficiary Maintenance:”    -   Use templates for an easy and organized way of editing or        entering new beneficiary details    -   Send automatic alerts to a beneficiary via email each time        payment is released    -   Select the method of payment, either fast or slow to fit the        client's needs    -   Locate a bank using the banking directory    -   Create searches to filter through beneficiaries or export as a        customized report    -   Review a beneficiary at-a-glance or expand for complete details        FIG. 7 e is a screenshot of an example of the “Beneficiary        Maintenance” section.

In one embodiment, the “Beneficiaries” section also includes“Beneficiary Payment History.” Some highlights of this section include:

-   -   Quickly review payment history for each beneficiary    -   Monitor and investigate the number of individual payments        released with detailed search capabilities        FIG. 7 f is a screenshot of an example of the “Beneficiary        Payment History” section.

FIG. 7 g is a screenshot of an example of an “Account Status Dropdown”section of the “Dashboard” of an embodiment of the point of conversionsystem site. In this embodiment, a record of each deal a client createsis recorded in the system's database. With the search criteria availablein ‘Account Status & Reports’ a client can review all account activityand create corresponding reports anytime they require the information.By accessing the following categories from the drop down menus, whichinclude, ‘Payment History’, ‘Settlement History’, ‘Deal History’,‘Forward History’, ‘Account Balances’ and ‘Today's Trades’, a client canselect the activities that will assist them in sorting and organizingkey information. For each search a client can add as much or as littleinformation as they prefer, the more detail they provide gives them theopportunity to create customized reports for themselves and their team.These results are immediately displayed for the client's review or usethe icons to print or export the results to a spreadsheet file (such asMicrosoft® Excel) which can then be used with their own accountingsoftware.

Some highlights of the “Account Status Dropdown” include:

-   -   Search and view historical account activity for all your        accounts by a specific date range, deal, reference ID or        beneficiary    -   Select and download account history which you export to a        spreadsheet file (such as Microsoft® Excel) or print

FIG. 7 h is a screenshot of an example of a “Resource Center DropdownMenu” from the “Dashboard” of an embodiment of the point of conversionsystem site.

FIG. 8 depicts an example of a POC report.

In one embodiment, a method for point of conversion analysis isperformed in a computing system, the method comprising: (a) retrievingdata by the computing system from a plurality of data sources includingcurrency to buy or sell, amount of currency to buy or sell, type ofcurrency for conversion, a negotiated spread, and an offset rate; (b)storing the data in one or more data structures using the computingsystem; (c) compiling a real-time point of conversion analysis based onthe data by the computing system including calculating a market cost anda customer dealt rate; (d) providing by the computing system to acustomer a point of conversion report based on the point of conversionanalysis at the same time that an amount of currency to be converted iscalculated by the computing system.

In one embodiment, the point of conversion analysis is compiled within10 seconds of when the customer agrees with the pricing of thetransaction, including the negotiated rate. In another embodiment, thepoint of conversion analysis is compiled within 5 seconds of when thecustomer agrees with the pricing of the transaction, including thenegotiated rate. In another embodiment, the point of conversion analysisis compiled within 1 second of when the customer agrees with the pricingof the transaction, including the negotiated rate. In anotherembodiment, the point of conversion analysis is compiled within 0.5seconds of when the customer agrees with the pricing of the transaction,including the negotiated rate. In another embodiment, the point ofconversion analysis is compiled within 0.1 seconds of when the customeragrees with the pricing of the transaction, including the negotiatedrate. In another embodiment, the point of conversion analysis iscompiled within 0.05 seconds of when the customer agrees with thepricing of the transaction, including the negotiated rate. In yetanother embodiment, the point of conversion analysis is compiled within0.05-0.1 seconds of when the customer agrees with the pricing of thetransaction, including the negotiated rate. In yet another embodiment,the point of conversion analysis is compiled within 0.1-0.5 seconds ofwhen the customer agrees with the pricing of the transaction, includingthe negotiated rate. In yet another embodiment, the point of conversionanalysis is compiled within 0.5-1 second of when the customer agreeswith the pricing of the transaction, including the negotiated rate. Inyet another embodiment, the point of conversion analysis is compiledwithin 1-5 seconds of when the customer agrees with the pricing of thetransaction, including the negotiated rate. In yet another embodiment,the point of conversion analysis is compiled within 5-10 seconds of whenthe customer agrees with the pricing of the transaction, including thenegotiated rate.

In another embodiment, the computing system referenced herein includesone or more programmed computers.

In a further embodiment, the computing system referenced herein isdistributed over a plurality of programmed computers.

In yet another embodiment, the one or more data structures referencedherein are one or more databases.

In another embodiment, the point of conversion report is provided to thecustomer immediately after the point of conversion analysis is compiled.

In a further embodiment, the point of conversion report is stored by thecomputing system and provided to the customer after a series ofconversion transactions is completed, wherein a point of conversionreport is generated by the computing system for each conversiontransaction.

1. A method for point of conversion analysis in a computing system, themethod comprising: (a) retrieving data by the computing system from aplurality of data sources including currency to buy or sell, amount ofcurrency to buy or sell, type of currency for conversion, a negotiatedspread, and an offset rate; (b) storing the data in at least one datastructure using a computing system; (c) compiling a point of conversionanalysis based on the data by a computing system including calculating amarket cost and a customer dealt rate; (d) providing by a computingsystem to a customer a point of conversion report based on the point ofconversion analysis at the same time that an amount of currency to beconverted is calculated by a computing system.
 2. The method of claim 1wherein a computing system includes one or more programmed computers. 3.The method of claim 1 wherein a computing system is distributed over aplurality of programmed computers.
 4. The method of claim 1 wherein atleast one data structure is one or more databases.
 5. The method ofclaim 1 wherein the point of conversion report is provided to thecustomer immediately after the point of conversion analysis is compiled.6. The method of claim 1 or 5 wherein the point of conversion report isstored by a computing system and provided to the customer after a seriesof conversion transactions is completed, wherein a point of conversionreport is generated by a computing system for each conversiontransaction.
 7. The method of claim 1 wherein the point of conversionreport includes the time that the amount of currency to be converted iscalculated.
 8. The method of claim 8 wherein the time is reported inhours, minutes, and seconds.
 9. The method of claim 1 wherein the pointof conversion analysis is performed in real-time.